If all the regulators in the world were to suddenly disappear, the future of bitcoin would not be worth a dollar unless improvements in speed and cost were made.
What has one thing you point out to do with the other? If regulations aren't being forced through, the usage and global interest in Bitcoin will decrease as well, meaning that you don't have to upgrade the protocol anymore, and don't need second layer applications. People should understand that the only reason we are where we are today, is because of regulations. Without these regulations the market would stay a pump and dump toy for deep pockets for ever, and with negative regulations being forced through, this market won't be able to grow much larger at all. Regulations if fairly implemented are a major contributor to more growth, and the only way to settle crypto as the next major multi trillion dollar asset class.